@TechReport{iza:izadps:dp11920, author={Huffman, David B. and Bognanno, Michael L.}, title={High-Powered Performance Pay and Crowding out of Non-Monetary Motives}, year={2018}, month={Oct}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={11920}, url={https://www.iza.org/publications/dp11920}, abstract={A previous literature cautions that paying workers for performance might crowd out non-monetary motives to work hard. Empirical evidence from the field, however, has been based on between-subjects designs that are best suited for detecting crowding out due to low-powered incentives. High-powered incentives in the workplace tend to increase output, but it is unknown whether this masks crowding out. This paper uses a within-subject experimental design and finds evidence that crowding out also extends to high-powered incentives, in a real work setting with paid workers. There is individual heterogeneity, however, with a minority of workers report crowding in of motivation. Thus, the impact of performance pay might depend on the mix of worker types.}, keywords={intrinsic motivation;incentives;non-cognitive skills;experiment}, }